This sounds a bit strange.
So basically, you are saying that you can't log into LP using the toolbar.
That trying to do so fails silently and the icon never turns red.
Meaning, that you can't use LP to log into ANY site - AOL being just one such example.
You've also said that you can browse other http and https sites with no problems, so port 80 and 443 are not being blocked by a firewall.
Can you please try logging into lastpass using the website at https://lastpass.com/
(upper right corner)
This is the same thing as logging in using the toolbar, so i'de be suprised if one works while the other doesn't,
but it's worth a shot to try and figure out why the login is failing for you.
Let me know if logging into the website works for you or not and we'll go from there.
It definitely works with FF2 (currently most of our users are using it with FF2), so i'm sure we'll get to the bottom of it quickly.